Lord Cruddas’ CMC Markets takes control of blockchain firm
CMC Markets, the firm founded by Conservative Peer Lord Peter Cruddas, announced on Wednesday it had acquired a majority stake in StrikeX Technologies.
The London-based trading firm upped its holding in the blockchain firm to 51 per cent from 33 per cent previously.
Shares in CMC Markets were up 0.3 per cent in midday trading on Wednesday.
The acquisition significantly strengthens CMC’s grip on StrikeX and its product roadmap, allowing it to fast-track development, regulatory approvals and global distribution.
CMC has also increased its holding of STRX cryptocurrency tokens from 10m to 15m as part of the deal.
The deal gives CMC instant access to StrikeX’s blockchain technology, Web3 infrastructure, and tokenised asset solutions.
The company said the integration of StrikeX would enable it to accelerate product roll-out and expand its digital solutions to broader audiences
Cruddas said: “This majority acquisition represents a significant leap forward in our ambition to lead in digital assets.
“We are building a future-ready platform to deliver regulated, institutional-grade access to tokenised assets, blockchain-powered solutions, and the next generation of financial services.
CMC Markets continues to drive innovation and diversification, leveraging strategic investments to expand its capabilities across the digital finance ecosystem.”
CMC was founded by Cruddas in 1989 as a foreign exchange market under the moniker Currency Management Corporation.
The firm floated on the London Stock Exchange in 2016 at 240p per share, valuing it at £691m.
The company was the subject of a “Cash for Access” scandal in 2012, which triggered a major blow to the firm.
Cruddas was reported by The Sunday Times saying that for a donation of £250k he would organise an invitation to dinners at Cameron’s private apartment in Downing Street, which would enable the donor to lobby their interests with the prime minister.
The scandal prompted Cruddas’ resignation and a 21 per cent revenue loss.
But, Cruddas later won a libel case against The Sunday Times after Justices agreed the articles held a defamatory meaning as Cruddas had claimed.